President Trump: Replace The Dollar With Gold As The Global Currency To Make America Great Again

Ralph Benko , CONTRIBUTOR President Donald Trump speaks at the Conservative Political Action Conference, Friday, Feb. 24, 2017, in Oxon Hill, Md. (AP Photo/Alex Brandon) Inside President Trump’s otherwise “standard Trump stump speech” at CPAC was nestled what might be a most intriguing observation: Global cooperation, dealing with other countries, getting along with other countries is good, it’s very important. But there is no such thing as a global anthem, a global currency or a global flag. This is the United States of America that I’m representing. There’s a keen insight in there that could, just maybe, transform our lives, America, and the world. No “global currency?”  Was this, with the poetic observation that “there is no such thing as a global anthem…or a global flag,” just a trope? Or could it contain a political portent with potential high impact on world financial markets?  Let’s drill down. As it happens, there is a global currency. It’s called the “U.S. dollar.” Most international trade is priced in dollars. The Bretton Woods international monetary system invested the dollar, which then was defined as and (internationally) was legally convertible to gold at $35/oz, with global currency status.  France’s then-finance minister, later its president, Valéry  Giscard d’Estaing, called the “reserve currency” status of the dollar — its status, along with gold, as global currency — an “exorbitant privilege.” By this d’Estaing was alluding to the fact, as summarized at Wikipedia, that “As American economist Barry Eichengreen summarized: ‘It costs only a few cents for the … Continue reading

CAN NEW PRESIDENT MAKE THINGS BETTER FOR THE PEOPLE?

Where is this economic boom that Former President Obama and his administration had taken so much credit for? The Obama Administration, with the assistance of the Federal Reserve and Company, deliberately kept the U.S. economy from creating any growth at all.  The money that flowed from the Federal Reserve, over the last 8 years, had a direct pipeline that flowed only into Wall Street Investment Banks. The American people were sold this false bill of sale that “Quantitative Easing” was going to make lending money to “Main Street America” easier to access. They promised that there would be a boost in hiring which would, in turn, increase aggregate demand and thereby reflect a newly stimulated economic growth! This QE effectively down-sized the middle class into minority status.  The largest growth has occurred within the low-income category.  Despite the stock market reaching near all-time highs and real estate bubbling over once again, there are now 45 million Americans on food stamps.  This number is at an all-time high.  People are feeling poorer today than ever, and with sky rocketing real-estate prices those who do not own a home cannot afford to buy anymore! This massive disconnect is expanding exponentially. The velocity of money is the number of times that currency is turned over to purchase domestically- produced goods and services.  One can see, as in the chart below, that the velocity of money has been steadily decreasing.  There are less transactions occurring by individuals in our economy.  One can see that … Continue reading

Investors Are Pouring Into Gold

By: Luzi-Ann Javier February 2, 2017, 10:17 AM CST February 2, 2017, 2:17 PM CST The Federal Reserve has emboldened gold bulls. Prices and trading volumes surged Thursday on call options giving holders the right to buy bullion at higher prices. On Wednesday, investors poured $413 million into SPDR Gold Shares, the largest ETF backed by the metal, recouping almost half of the money that exited last month. The Fed, which kept interest rates steady this week after a two-day meeting, gave little clue on when it might next tighten monetary as officials grapple with the uncertainty created by a new presidential administration. Policy makers in December telegraphed three rate hikes for 2017. Gold prices have rebounded about 6 percent this year, helped by a weaker dollar and demand for the metal as a haven, after posting the worst quarterly loss since 2013. “There is no imminent concern of a Fed rate hike, and that gleams the green light on for the metals to move higher,” David Meger, a director of metals trading at High Ridge Futures in Chicago, said in a telephone interview. “The weakening dollar and the lack of concern of a Fed interest-rate hike, and slightly higher inflationary numbers in the market, all support the precious metals.” Gold futures for April delivery advanced 0.9 percent to settle at $1,219.40 an ounce at 1:41 p.m. on the Comex in New York, after touching $1,227.50, the highest for a most-active contract since Nov. 17. Call options giving holders the … Continue reading

How every commodity performed in 2016

Visual Capitalist | Jan. 8, 2017, 2:50 PM Iron ore and zinc were the best performing commodities on the face of the planet in 2016. Iron finished up 81%, its first calendar gain in four years. Meanwhile, zinc shot up 65.7% on the year as major zinc mines shut down, and supply stockpiles dwindled. Courtesy of: Visual Capitalist 2016 Commodity Performance It was an up and down year for commodities, but things ultimately finished in the black. The S&P Goldman Sachs Commodity Index (GSCI) climbed 10.1% on the year – it was just enough to edge out the S&P 500, which ended 2016 with a 9.5% return. WINNERS IN 2016 The biggest winners on the year were base metals and the oil and gas sector. Here’s how base metals did: Base Metal Q1 Q2 Q3 Q4 2016 Iron Ore 37.0% -6.2% 6.3% 31.1% 81.0% Zinc 20.0% 13.1% -3.2% 26.1% 65.7% Nickel -3.1% 13.9% 11.9% -5.0% 17.3% Aluminum 3.8% 7.2% 1.4% 4.0% 17.3% Copper 0.1% 3.9% -0.5% 13.1% 17.1% Iron ore and zinc were the best performing commodities on the face of the planet in 2016. Iron finished up 81%, its first calendar gain in four years. Meanwhile, zinc shot up 65.7% on the year as major zinc mines shut down, and supply stockpiles dwindled. Oil and gas also posted a major comeback in 2016: Energy Q1 Q2 Q3 Q4 2016 Natural gas -17.0% 53.3% -2.7% 28.0% 58.5% Oil (Brent) 0.6% 35.1% -1.2% 13.6% 52.4% Oil (WTI) -3.2% 37.3% -2.1% 11.4% … Continue reading

David Smith This Correction Is Painful but Exactly What Bulls Needed to Happen

Published on Oct 7, 2016 Read the full transcript here: http://bit.ly/2dZm6mF David Smith, Senior Analyst at The Morgan Report and MoneyMetals.com columnist gives precious metals investors some tremendously useful advice in the face of some difficult market action for gold and silver — and he also tells us why he believes 2017 will be the year that general public discovers gold and silver in a big way. … Continue reading

Weekly Bulletin: The Rally of 2016—Over or Just Getting Going?

  BULLETIN October 10, 2016 Weekly Bulletin: The Rally of 2016—Over or Just Getting Going? Dear Speculators, Last week’s 4.5% retreat in gold prices hit gold stocks hard. The VanEck Vectors Gold Miners ETF (GDX) dropped about 11.5% and the VanEck Vectors Junior Gold Miners ETF (GDXJ) about 13.5%. This share price action is normal: Resource stocks always move with high leverage to the underlying commodities. What may seem abnormal, but has been par for the course for some years, is for the paper gold market to overreact to verbal testing of the waters by the Fed. Nothing has actually changed. Still, paper traders in New York reacted to a few hints from Fed members as though they’d dropped a hornet’s nest in their midst. We’ve seen this so many times it’s no surprise, but it still makes us shake our heads. Remember: Initial rate hike target for this year: 4 Revised rate hike target for this year: 2 Actual rate hikes this year: 0 And what happened when the Fed did raise interest rates, ever so timidly, last December? Mainstream markets tanked in January. Precious Metals took off for what is still one of their best years in recent memory. So if I say I see the current correction as a buying opportunity, don’t dismiss it as me just being a perma-bull on precious metals. I’m not. I’ve been warning of the potential for near-term weakness for some time. I’ve been insisting that we take profits and go risk-free whenever we can … Continue reading

Doug Casey on the Migrant Crisis

Doug Casey on the Migrant Crisis By Nick Giambruno Nick Giambruno: The migrant crisis is tearing Europe apart. What’s your take Doug? Doug Casey: I’m all for immigration and completely open borders to enable opportunity seekers from anyplace to move anyplace else. With two big, critically important, caveats: 1) there can be no welfare or free government services, so everyone has to pay his own way, and no freeloaders are attracted 2) all property is privately owned, to minimize the possibility of squatter camps full of beggars. In the absence of welfare benefits, immigrants are usually the best of people because you get mobile, aggressive, and opportunity-seeking people that want to leave a dead old culture for a vibrant new one. The millions of immigrants who came to the U.S. in the late 19th and early 20th centuries had zero in the way of state support. But what is going on in Europe today is entirely different. The migrants coming to Europe aren’t being attracted by opportunity in the new land so much as the welfare benefits and the soft life. For the most part they are unskilled and poorly educated. What we’re talking about here is the migration of millions of people of different language, different race, different religion, different culture, different mode of living. If you’re an alien and you’re 1 out of 10,000, or 1,000, or 100, you’re a curiosity, an interesting outsider. But an influx of millions of migrants is only going to destroy the old … Continue reading

The Case for Natural Resource Equities

The Case for Natural Resource Equities September 23, 2016 By Frank Holmes CEO and Chief Investment Officer U.S. Global Investors This week I attended the Denver Gold Forum along with three other U.S. Global Investors representatives, including our resident precious metals expert Ralph Aldis. I was happy to see sentiment for gold way up compared to last year’s convention, as was turnout. I was also pleased to see Franco-Nevada, Silver Wheaton and Royal Gold in attendance, all of which I’ve written extensively about. One of the most interesting presentations was held by Northern Star Resources—the third biggest listed gold producer in Australia, a dividend payer and a longtime holding of USGI. I’ve always appreciated Northern Star’s insistence on being a business first, a mining company second. This shareholder-friendly mantra is reflected in its stellar performance. Compared to other companies in the NYSE ARCA Gold Miners Index (GDM), Northern Star is a sector leader in a number of factors, including five-year cash flow return on invested capital. Whereas the sector average is negative 1.6 percent over this period, Northern Star’s is a whopping 27 percent, the most of any other mining company in the GDM. This has helped it return an amazing 800 percent over the last five years as of September 23. Compare that to the GDM, which returned negative 56 percent over the same period. Australian gold miners as a whole trade at an impressive discount to North American producers, 5.7 times earnings versus 8.3 times earnings, according to … Continue reading

Q&A: Legendary executive Rob McEwen talks about gold mining in golden times

DERRICK PENNER More from Derrick Penner Published on: August 4, 2016 | Last Updated: Rob McEwen, self-described chief owner of McEwen Mining Inc. VANCOUVER SUN Legendary mining executive Rob McEwen knows a thing or two about gold-mining companies, having built Goldcorp Inc. into a powerhouse producer before stepping down as chairman and CEO in 2005. Now, he’s working on building up his next venture, McEwen Mining Inc., with mines in Mexico and Argentina just as gold has hit a rebound. The Vancouver Sun caught up with him at the recent Sprott Natural Resources Symposium to talk about his views on where the rally is going: Q: With your firm, you take the title chief owner. Why is it important for you to spell that out? A: I think it’s very important that people running companies have skin in the game, they have something at risk. They don’t just get a big salary with lots of options and have no investment in the company. It makes you focus on what’s the most important thing a company should be doing, that is building the value for every other share owner of that company. Q: The price of gold is up 25 per cent from its trough, the S&P/TSX Gold Index has bounced back more than 100 per cent, many people have read a lot about the uncertainties out there that are driving this. What’s your view on what got us here? A: There are a number of factors. One, the expansion of money supply by countries … Continue reading

Stupid Cheap Stock Warrants

  June 23, 2016 Dudley Pierce Baker http://commonstockwarrants.com/   As bad as it has been over the last several years we have maintained the view that the markets would come back and come back stronger than ever. That is not to say we are just dreamers, but rather our belief in the view that gold is money and that others would return to this view as well. My preferred methods of maximizing one’s exposure to the resource sector would be by purchasing common shares or stock warrants on selected precious metals companies and more specifically the junior mining companies. I own many of the stock warrants trading on the Precious Metals (PM) companies. Like you, I have limited resources and cannot buy them all, but I try. Most of the stock warrants trading are literally selling for pennies but have the potential to be trading for many $$$’s within the next couple of years. I love these Stupid Cheap Stock Warrants because they give the average Joe the opportunity to book some outrageous gains. However, some of the stock warrants can be somewhat tricky to buy. Many of them are very illiquid and some do not trade everyday. Is this a problem? Not for me and my subscribers. You just need to check the bid and ask prices before placing your orders and decide what you want to pay. Limit Orders are always advised when buying stock warrants as well as many of the junior mining shares. So readers, what are … Continue reading